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1. If sales volume decreases, and all other factors remain unchanged, the contribution margin ratio will decrease t/f. 2. In two companies making the same

1.

If sales volume decreases, and all other factors remain unchanged, the contribution margin ratio will decrease t/f.

2.

In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure. t/f

3.

At the break-even point, the total contribution margin and fixed expenses are equal. t/f

4.

All other things the same, an increase in total fixed expenses will increase the break-even point. t/f

5.

All other things the same, a reduction in the variable expense per unit will decrease the break-even point. t/f

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